Wireless telephone service has gained widespread acceptance and popularity throughout much of the modern world. Advanced technologies on the horizon will speed the delivery of data to and from mobile devices as well as make voice calls more reliable, further increasing the desirability of having access to wireless services. Many individuals are deciding to discontinue landline service altogether, relying solely on wireless service for telephone voice communications.
To meet the public demand for wireless access, wireless service providers have developed myriad service plans. These service plans generally fall into one of two categories, postpaid or prepaid. Postpaid access plans generally allow the mobile customer to use airtime during a period for which the customer is billed at a later date. Enrollment in such a plan can require a level of trust between the customer and the wireless service provider, who may, for example require a credit check to determine if the customer has a history of promptly paying his or her debts. Generally, devices are sold under these plans at a discounted rate, the discount being recouped over the term of a contract that the customer is required to enter. The contract binds the customer to purchase wireless service for a predetermined period of time. Such plans also generally charge a base rate for a certain number of included minutes of airtime and/or amounts of data that can be transferred. An increased rate is usually charged for additional minutes or data.
Prepaid plans, on the other hand, allow the customer to pay for the wireless service before it is used. This can allow customers who may have some negative credit history to receive wireless access without risk to the wireless service provider that the bill will go unpaid. Additionally, prepaid plans can be attractive to customers who do not wish to enter into a long term contract commitment. Such plans also can be used by those who want to avoid the risk of expending their allotment of base minutes and paying the increased rate thereafter.
Of course, before a customer can enroll in an access plan, the customer must own a wireless device. These devices can include cell phones, PDAs, and BLACKBERRY® handheld devices, among others. Newer devices are popular not only for wireless convenience, but also due to novelty and fashion considerations. Modern devices allow customers to download ring tones and video games, and to purchase accessories and upgrades.
Wireless devices can be found for sale in myriad locations such as, for example, mall kiosks, stores operated by wireless service providers, national office and computer supply stores, and other large national retailers. These locations may offer one or both of prepaid and postpaid plans with the devices that are offered for sale. The devices offered at these locations may be locked to a specific wireless service provider and also may be restricted under agreement between the reseller and the wireless service provider as to whether or not the devices can be activated as postpaid devices and/or prepaid devices.
Unfortunately, the popularity of wireless access has made wireless devices a tempting target for theft. By stealing a device, the thief avoids paying the upfront cost for the device itself and can call the wireless service provider to activate service for the device. Contract commitments are avoided as well. The thief may have difficulty activating the phone as a postpaid device due to credit history problems, but still may obtain prepaid service. Where postpaid phones are generally stored under a counter or locked away in a cabinet with only a sample phone on display, prepaid phones are often placed in boxes in customer-accessible areas. This can make prepaid phones more susceptible to theft by customers or even store employees. Not knowing that a new device has been stolen, the wireless provider can unwittingly allow the stolen device to access the network.
Some wireless architectures include provisions for combating theft. For example, the Global System for Mobile Communications (GSM) standard defines a unique device identifier for all compliant phones. This identifier is called an International Mobile Equipment Identifier (IMEI). GSM service providers can maintain a database of IMEI's that categorizes the status of the IMEI. For example, three status levels can be used, white, black, and gray. A white-listed device could be a device that has no suspicious activity associated with it. A gray-listed device could have some history of suspicious activity, but still may be allowed to access the network, and a blacklisted device could be a known stolen or rogue device. Wireless service providers may or may not limit device access in this manner.
The IMEI can be used, for example, when a paying customer's device is stolen from a car. The customer can call the GSM provider to report the stolen phone, and the GSM provider can blacklist the phone so that it is unable to access the network. The IMEI is known in this case because it was associated with the customer's account. GSM providers may share their IMEI lists so that a blacklisted phone cannot be used on any network and is thereby rendered useless. Some European wireless service providers limit access in this manner.
This method of restricting stolen device usage is effective in the scenario presented above, but may not be as helpful in the case of a new device stolen from a retail store. In the latter case, the retailer may not have the IMEI on record. Or, the retailer may not notice that the device has been stolen for quite some time, allowing the thief to use it in the interim. It also is possible that the retailer does not have the resources to devote to informing the wireless service provider that the device has been stolen. For example, it may cost more to pay staff members to watch inventories closely enough to detect the theft, determine which device was stolen and its IMEI, and then call the wireless service provider to blacklist the device than it costs to simply replace the stolen device. Even more troublesome for retailers, is the case wherein a staff member steals a device. Some retailers, indeed, may decide that due to the risk of theft, it is not worth offering the devices for sale at all. This is an unfortunate situation for the wireless service provider, the retailer, and honest paying customers.